European Commission Report: Greek SMEs Have Declined Drastically Amidst Financial Crisis

business-bankruptThe latest numbers released by the European Commission regarding the number of small and medium-sized enterprises (SMEs) show that in the past 7 years, between 2008 and 2015, there has been a shutdown of some 145,000 businesses in Greece.

The data shows that over the 7-year period SMEs lost 35 percent of their added value to society, resulting in a decline of 22 percent of jobs they provided. Small businesses, known as “mom and pop” or family owned stores, are the backbone of the Greek economy.

Out of the 704,339 SMEs accounted for by the European Commission in 2015, 682,132 were defined as very small businesses, 19,631 small and 2,576 medium-sized businesses. Large businesses accounted for just 0.1 percent of Greek enterprises at only 397.

With hikes in taxes and austerity measures impacting the cost of resources and goods as well as wages, the decline of Greece’s SMEs is considered to be symptomatic of the financial crisis in Greece.